Table 3.3 -Consider Two Individuals, Bob and Jerry, Who Produce Guitars and Guitars

question 46

Multiple Choice

Table 3.3
-Consider two individuals, Bob and Jerry, who produce guitars and banjos. Bob and Jerry's weekly productivity are shown in Table 3.3. Which of the following is true?

• A) Bob has an absolute advantage in producing both goods, but no one has a comparative advantage in producing either good.
• B) Bob has an absolute and a comparative advantage in producing both goods.
• C) Bob has an absolute advantage in producing both goods, and a comparative advantage in producing guitars.
• D) Bob has an absolute advantage in producing both goods, and a comparative advantage in producing banjos.

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Definitions:

Strategic Opportunism

Focuses on long‐term objectives while being flexible in dealing with short‐term problems.

Long-Term Objectives

Goals or plans that are intended to be achieved over an extended period, typically over several years, focusing on future growth and development.

Short-Term Problems

Issues or challenges that need immediate attention and resolution, typically affecting an organization or individual over a brief period.

Crisis Management

The identification, prevention, and handling of emergencies, especially those that threaten to harm an organization's people, profitability, or reputation.